Provisional figures released by ADB on Friday shows approvals of loans and grants, sovereign (governments) and non-sovereign (primarily private sector), reached a record $16.58 billion -- a 23 percent increase from 2014. Issuing a statement, ADB said its technical assistance amounted to $144 million and co-financing increased by 13 percent to a record $10.43 billion in 2015. "Out of the $16.58 billion, sovereign loan and grant approvals increased by 21 percent to $13.95 billion in 2015."
Non-sovereign approvals made a big leap from $1.92 billion in 2014 to $2.63 billion in 2015. In addition to volume increase, ADB increased its allocation to the poorest countries to 40 percent of non-sovereign approvals, according to the bank that invests on development of Asia-Pacific region. "To expedite small non-sovereign transactions, ADB introduced a fast-track approval process."
ADB has said it is now making active use of local currency lending to the private sector and increased bond issuances in local currencies to support the lending.
"Our record performance last year reflected strong and growing demand from the Asia and Pacific region," ADB President Takehiko Nakao said in the statement. "Infrastructure and other development needs are huge and poverty remains pervasive despite the region's robust growth performance."
ADB Board of Governors last year unanimously endorsed the merger of ADB's concessional Asian Development Fund (ADF) and its market-based ordinary capital resource balance sheet to help meet the increased demand for its operations. With this path-breaking reform, ADB's financing capacity -- annual approvals of loans and grants -- will dramatically increase up to $20 billion by 2020.
ADB said it is well on track to achieve this scaling up.
Among ADB's operational highlights last year were the quick response to natural disasters, especially the Nepal earthquake in April and the Vanuatu cyclone in March; and support for necessary fiscal measures of countries suffering from lower commodity prices and volatility in financial markets, such as Kazakhstan and Mongolia.
In 2015, ADB was among the first multilateral development banks to commit a sizable climate finance target. In late September, ADB announced it would double its annual climate financing to $6 billion by 2020, up from the current $3 billion.
Last year, ADB operationalzed seven sector groups such as energy and transport, and eight thematic groups such as governance and gender, which work across operations departments. It will strengthen ADB's knowledge services and provide innovative solutions to client countries, according to the regional development bank, according to the statement.
"As we approach our 50th anniversary this year, we are committed to scaling up our operations, and achieving poverty reduction and sustainable development in the region," Nakao said, adding that the bank will be a stronger, better, and faster bank by deepening our partnerships with member countries, other international financial institutions, and civil society.
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